Tag: healthcare

Blockchain is Like the Internet of 1992

blockchain

If you’re in the banking or healthcare industry, you’ve likely heard the term “blockchain.” On the surface, this technology behind the exchange of bitcoin may not be taken seriously because some think that bitcoin, now valued at $41 billion, is a passing fad. But as the framework that makes bitcoin exchange possible, blockchain provides an innovative level of security that allows anonymous people who do not know each other to exchange money, without the traditional safety net (or fees) of a bank acting as a middle-man to authenticate funds transfers. And since this solution has opened up so many possibilities within the financial sector, many other industries are preparing for how blockchain can fundamentally change the way we all do business.

Imagine it’s 1992. Think back to what the internet was to you at that time. During this year, the first readily-accessible browser of the “World Wide Web” was launched. At the time, how would you have explained to people what the internet was?

In 1992, the internet was described as “a wide-area hypermedia information retrieval initiative aiming to give universal access to a large universe of documents.”

HUH? Sure, this description is technically true, but in 1992 this didn’t even begin to scratch the surface of how the internet would fundamentally change daily life for us all in 2017. In the ‘90s while we would wait 15 minutes to dial-up to the World Wide Web or wait 10 minutes for a picture to download, it would have been hard to imagine a day when we would do most of our banking, shopping, reading and communicating online.

Today is not so different from 1992, because we still have the same difficulties describing new technology and envisioning how it can change our lives as we know it. In the context of bitcoin exchange, blockchain creates an encrypted peer-to-peer network where every single bitcoin transaction is recorded and validated throughout the entire network. This is different from our traditional model of transferring money from one account to another, where we rely on a bank (a central location) to verify that originating funds are available, to guarantee the safety of the funds while they are in transit, and to ensure that these funds reach the destination account as intended. Today, banks act as intermediaries for financial transactions, which allows us to trust in the safety and security of our money as we transfer funds.

Blockchain is a solution that also allows us to trust in the exchange of money, only the process works differently. The blockchain is referred to as a “ledger,” a series of records of validated monetary transactions, where the identical updated ledger resides throughout the peer network, not in one central location as under the traditional banking model. The system of blockchain is characterized by a few unique attributes that make this solution uniquely secure and positioned to transform many types of traditional business transactions:

  • Distributed: This describes the fact that the ledger exists throughout the blockchain network, and is not maintained in one central location.
  • Smart Contracts: We can think of this as an automated execution of a legal contract that governs the rules of each financial transaction.
  • Consensus: In order for each transaction in blockchain to take place, “consensus” prevents fraudulent transactions by ensuring the validity of each transaction and agreement between parties of the transaction.
  • Immutability: The record of a transaction in blockchain lives forever and it cannot be erased. The benefit of the inability to erase a transaction is that one single asset can be tracked throughout its entire life. In this sense, if a bitcoin were a dollar bill, the blockchain would track where and when the dollar was printed, who the first owner of that dollar was, and it would record every single date and exchange of hands along the blockchain, and none of these transactions could ever be erased.

Today, blockchain is a solution looking for problems to solve. The healthcare industry has high hopes for blockchain technology since interoperability, or the ability to securely share medical records across providers and patients, is the driving force behind many technology investments within healthcare. It’s widely believed that blockchain will be the technology that will form the basis of securely creating and sharing medical records that will solve many of healthcare’s current issues of siloed stores of data that lead to the delays and administrative burden of sharing health information. Designing an overlay of blockchain throughout the healthcare system reimagines a world without duplicate paperwork, inefficient payment systems, and delays in sending health records from provider to hospital, and these improved processes could all take place with a superior level of security.

Just as the internet was to 1992, so is blockchain to 2017.  We’re just getting started, and we can barely describe what is to come. This technology is indeed already transforming some industries, but in relation to identifying new ways it can enhance transaction security, prevent fraud, remove “middle man” fees, automate legal agreements, and increase the speed of information-sharing, we have yet to scratch the surface.

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If you are interested in exploring what blockchain means to the future of healthcare, banking, government and cyber-security, join us on November 29th at Salve Regina University in Newport, Rhode Island for Blockchain, Bitcoin and Crypto-Currencies – Is Your Organization Ready? organized by the Rhode Island Israel Collaborative.

Also for more information on blockchain and bitcoin, we recommend this succinct explainer video: Bitcoin Made Simple

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BetaXAnalytics is a healthcare consulting firm that helps payers and providers to maximize their CMS reimbursements and helps employers to reduce their healthcare spending through proven strategies to contain costs. For more insights on using data to drive healthcare, pharmacy and wellbeing decisions, follow BetaXAnalytics on Twitter @betaxanalytics, Facebook @bxanalytics and LinkedIn at BetaXAnalytics.

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2 Reasons Why Your Data Is Lying To You

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2 Reasons Why Your Data is Lying to You

Data

Big Da·ta noun

An overused buzzword, which, despite its lofty sound, basically means “lots and lots of data.” A Mount Everest of tangled data. 

The term “Big Data” gets thrown around all too often these days, but anyone who works closely with healthcare data is intimately aware of its shortcomings. From lack of sharing patient data between providers to inconsistencies with recording patient data, the more we know about the problem, the more impossible it seems to unlock the powerful potential that lies in healthcare data. But at the heart of the issue, there are 2 main reasons why people don’t get accurate insights from their data.

Reason #1 Your Data Lies: It’s Dirty

Software expert Hollis Tibbets, formerly the Global Director of Marketing at Dell, estimated that duplicate data and bad data combined cost the U.S. economy over $3 trillion every year. This staggering number is just about two times the national deficit.

Unfortunately, the healthcare industry in particular is a breeding ground for duplicate data. The U.S. Attorney’s office estimated that 14% of healthcare spending is wasted due to dirty data; this includes duplicate and/or incomplete data. With 16% of the U.S. Gross Domestic Product attributed to healthcare spending – or $2.14 Trillion total spend – that would mean that duplicate and dirty data costs the healthcare industry over $300 billion every year. And the sad reality of this issue is that 50% of IT Budgets are spent on data rehabilitation.[1]

Larry English, an acclaimed information quality expert and creator of the Total Information Quality Methodology (TIQM) has estimated that that 15-20% of a company’s operating budget can be wasted due to dirty data. This number is quantified by the exhaustive effort to extract, manipulate, append and scrub data via SQL, Excel or other means. And this estimate is independent of the fact that 30% of healthcare provider records are inaccurate or missing information due to inconsistent entry of codes and inaccurately transposing metrics or patient identifiers.[2]

Reason #2 Your Data Lies: It’s Interpreted by People Who Do Not Understand It

A study by McKinsey has projected that “by 2018, the U.S. alone may face a 50 percent to 60 percent gap between supply and requisite demand of deep analytic talent.” The shortage is already taking hold across industries, including healthcare, finance, aerospace, insurance, and pharmaceuticals. In April 2014, the consulting firm Accenture surveyed its clients on their big-data strategies, and more than 90 percent said they planned to hire more employees with expertise in data science—most within a year. However, 41 percent of the more than 1,000 survey respondents said a lack of talent was their main hurdle.[3]

Data Scientists are important in the process of data cleansing, appending and analysis because they work with unstructured data. These are the people who write algorithms to extract insights from the mounds of disparate data sources, including e-mails, text notes, photos and other user-generated content. They sort through the mess of dirty (messy, incomplete, and inaccurate) data and neatly append it to uncover the true insights.

All analytics must start with data investigation. Since data is inherently messy, the analysis process must start with a multi-faceted cleansing process by someone who, while working with health data, has deep clinical understanding. This knowledge enables them to identify and appropriately treat negative values, reversals, duplication, adjustments, and they understand how to handle data anomalies. This experience also enables them to check for clues throughout the process as to why data may not make sense.  For example, thoroughly examining data may reveal issues with recycling patient IDs and inadvertently mixing patient data together. Yes, this happens. Dirty data is not to be trusted…ever.

Bring Truth Out of Data

It is easy to get caught up in the buzz of “Big Data.” You may have a strategy for collecting data…and maybe even an analytics department. But neither of these efforts means your data is telling the truth. If a significant part of your data management strategy is not allocated to 1) scrubbing data and 2) ensuring those who work with the data truly understand it, your data’s actionable insights (read: truth) may still be hiding.


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Shannon Shallcross is the CEO of BetaXAnalytics, a company that leverages data insights to improve clinical outcomes, improve patient well being and decrease health care costs. They deliver custom tools and data analytics to managed care organizations, providers and employers to reduce costs and improve the quality of healthcare and pharmacy services.

 

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